|
We have
constantly advocated investments in uranium mining(URA),
particularly in friendly jurisdictions such as North America. This support of
the nuclear sector (NLR) has often been in the face of formidable attacks by
naysayers, using every weapon in their arsenal to denigrate proponents of
atomic energy. No other sector in recent memory has had to withstand such a
barrage.
Our patience and fortitude is being
vindicated by recent developments. There is a nuclear renaissance globally
especially in North America. Witness recent announcement by Rio Tinto(RIO), who made a “Friendly” offer on top
of Cameco’s (CCJ) “Hostile” bid.
New reactors in the U.S. have been approved for the first time in three
decades. Emerging and growing economies like India and China are going full
speed ahead, while reports are confirming that even the Germans are turning
reactors back on due to freezing temperatures.
Understandably, the economic upturn in
2012, fears of inflation due to skyrocketing oil prices (OIL) above $110 a
barrel is a factor in this atomic revival. Nevertheless, the world is
becoming increasingly aware in the deficiencies of coal, solar and natural gas
to offer competitive advantages in the growing quest for inexpensive and safe
source of electricity. The uranium miners are outperforming the general
equity market so far in 2012.
Observe the Solyndra
solar collapse and scandal. Countless tax payer dollars disappeared, while
the private interests were rewarded. Explosions at coal mines and the
contingencies of solar and wind power are becoming increasingly evident.
Despite the Phoenix like rise uranium investors should not rush to take their
nuclear chips off the table as we feel this is just the opening act for the
world’s quest for nuclear ore.
The feeding frenzy for Hathor is only the beginning of major mining interests
who recognize that nuclear is a logical and economical energy source for
America’s future electricity. Expanding nuclear into the energy
equation will diversify our power demand and produce inexpensive electricity
for our nation far into the future. Our homes, businesses, and environment
will be the beneficiaries.
Now everybody wants to get into the
nuclear act. Recently, Fluor (FLR) Corporation entered the arena with the
goal of developing a small-scale nuclear reactor, which is much more compact
than the conventional power plants who have grown
forty year old beards.
Moreover, the Department of Energy is
supporting the development of smaller and safer reactors to supplant
antiquated and prohibitively more expensive power plants. These smaller
reactors are intended to be safer than the old Fukushima behemoths.
Bechtel Corporation is uniting with
Babcock and Wilcox (BWC), which has their own patents on the new generation
of small modular reactors. It must be reiterated that these units can serve
to revolutionize the American energy industry and restore our preeminence in
electrifying the world.
Sooner or later, the collective
corporate consciousness will realize that a new generation of nuclear energy
must be accelerated. Not only to provide a new birth for American ingenuity,
but a plethora of new jobs for an underemployed nation.
These compact units can be transported
by rail and truck to existing facilities. To build a new power plant in the
conventional mode is exceedingly more expensive than moving a small unit and
plugging it into a standing facility.
We are talking about economies of scale
here as the need for electrical power increases in a locality. These
ingenious devices have been used in this country for many years. Our military
bases, battleships and submarines have been running on nuclear power for
decades. The concept is not novel. The world of investors is growing
increasingly aware that small reactors represent the wave of the future. It
is imperative that this concept achieves early fruition.
The Tennessee Valley Authority purchased
six of these mini-units. Surprisingly, even Saudi Arabia realizing their peak
oil production may have been reached, are building the King Abdullah City for
Atomic and Renewable Energy. (KA-CARE) As they are a desert
kingdom water is a rare commodity. These safe and inexpensive units can
operate without water and produce plentiful electricity for air conditioning.
What does this all mean for Gold Stock
Trades subscribers as they navigate the current precarious marketplace?
Basically it is our old mantra that development of natural resources is often
a gradual process requiring money and time. With these considerations in mind
the potential payoff in profits are worth the wait.
Rio Tinto serves as a prototype of the
patience required when investing in uranium stocks such as Hathor. Quietly they have been purchasing Hathor stock. Not only is it Carpe Diem for them, but
their action now presages similar moves by other major corporations to assure
a secure supply of uranium ore for at least a decade to come.
Hathor is not
anywhere near production, but Rio Tinto is competing with Cameco
to assure future supply at a purchase price which affords a healthy premium.
There are other prospects in the Athabasca Basin just beginning to announce
new alterations and discoveries.
|
